Indonesia has announced the suspension of its B50 biodiesel program for 2026, leading to a significant downward revision in future biodiesel demand expectations, which is weighing on palm oil prices. Additionally, international buyers have concentrated vessel bookings ahead of Indonesia's planned export tariff hike in March, making it difficult to alleviate the inventory pressure on Malaysian palm oil in the short term. Concurrently, domestic palm oil inventories in China are at a yearly high, and substantial recent vessel arrivals have increased domestic inventory pressure, putting downward pressure on nearby prices. Palm oil futures have declined, and the market is expected to remain volatile with a weaker bias in the near term.